Baptist church leaders explore a wind insurance option

BILOXI, Mississippi -- About 60 coast Baptist church leaders learned during a meeting with Lt. Gov. Phil Bryant and Insurance Commissioner Mike Chaney on Wednesday that they could use the state wind pool to ease their congregations‚ mounting insurance costs.

View full sizeBaptist church leaders learned about the advantage of using the state
wind pool if they bought insurance jointly at meeting Wednesday at the
First Baptist Church of Biloxi. From left, are the Rev. David Williams
of Temple Baptist Church of Big Point, the Rev. Michael Barnett of Ocean
Springs First Baptist Church and Philip Price, executive director the
Jackson County Baptist Association. (Harlan Kirgan/Press-Register)

Steve Mooneyham, executive director and treasurer of the Gulf Coast Baptist Association, said the meeting was held because of "the difficulty churches are experiencing with the exorbitant premiums."

There are 65 churches in Hancock, Harrison and Stone counties in the Gulf Coast Baptist Association, Mooneyham said.

"We‚ve got a small church that is in Wiggins whose premium went from $4,000 to $7,000 a year," he said. "That doesn't sound bad, but their budget is $25,000."

Some churches are dropping wind coverage and self-insuring, he said.

Bryant told ministers and other leaders that groups of churches could buy $1 million in coverage from the Mississippi Windstorm Underwriting Association. The coverage could then be used as a deductible when additional coverage is purchased, he said.

But the key to obtaining the coverage is that churches must form groups, Chaney said during the meeting at the First Baptist Church of Biloxi.

"I think we‚ve got a solution to buy coverage that covers you at favorable rates," Chaney said of the state pool.

Churches could continue to buy coverage from local agents in addition to the $1 million wind pool coverage, he said.

View full sizeMississippi Insurance Commissioner Mike Chaney, right, talks at a
meeting of Baptist church leaders labout the advantage of using the
state wind pool if the churches could pool their resource during a
meeting Wednesday at the First Baptist Church of Biloxi. Seated at left
is Lt. Gov. Phil Bryant. (Harlan Kirgan/Press-Register)

The Rev. Paul Crowley, pastor of the Woolmarket Baptist Church, said forming a group to buy insurance may be difficult for the Baptists, because their congregations operate autonomously.

Philip Price, executive director of the Jackson County Baptist Association, said many of the 44 churches in his association had dropped wind coverage and now self-insure.

"My concern has always been, as stated by one of gentlemen here, is if another hurricane comes, many of the churches that were so active in helping people are not going to be able to help because they are going to be financially strapped," he said.

"If they are self-insured, they are going to have to spend their resources to rebuild," he said.

The Rev. Michael Barnett, pastor of the First Baptist Church of Ocean Springs, said his church's insurance premiums have risen from about $25,000 to $55,000 in 10 years.

"This last increase was not incremental like it has been since Katrina," he said. "We have not had a claim since Katrina, but now we jumped $12,000 this year."

Price, who is co-chairman with Mooneyham in the group seeking a solution, said the independence of Baptist congregations poses a unique challenge in pooling their insurance-buying resources.

Bobby Portwood, a member of the state wind pool board, cited the Gulfport airport as an example of how the wind pool could be used.

Portwood said a group was formed of airport entities and the wind pool was used as the first million of $98 million in coverage on 40 buildings, he said.